Last time, we shared the why of Using Chinese legal website checking system to verify Chinese companies. This time, we are going to introduce other tips of verifing Chinese Companies.
Usually, the best way to check out Chinese exporters is to visit those trading companies in person or check them out with local government authorities in China. However, it is not realistic to most of people.
As Chinese, we found out there are still some ways that you can pre-verify Chinese exporters from following points:
1. Licence Number and Importing N Exporting Number
Every company in China has its own unique licence number and if this company has the right to import and export, it should also have the Importing and Exporting Number which is authortitied by China Customs. The relationship of Licence Number and Importing N Exporting Number is: the first two number should be the same (local code).
But thank to Photoshop, some scammer can make fake numbers, or using other company's Licence Number (lots of companies publish their licence number online). Then we need to:
2. Asking for Contact Information
Most of the scammers don't offer a right address, tel and fax number online because they are afraid of verifing. We can easily use google map: http://ditu.google.cn to check out if this address is really exist. Asking for fax number is also a good idea, because the scammers usually do not have fax. They stay at home, only have one computer and one cell phone.
3. Asking for help
What if the company have licence number, importing and exporting number, address and fax number, but you still worry about the validity. Then find a Chinese person or company to help you verify. During 2009, EASTHV Business Consulting has verified hundreds of Chinese Companies (trading companies and factories ) for our clients and friends. And we did this for totally free of charge. Because verifying a company is not difficult to us and we would like to provide such value added service to our friends. However, even these chinese exporters are real exist, how can we know its quality of product?
4. Unbelievable Low Prices
Price is most important factor that people want to import good from China. And it is also the factor that scammers can be used to defraud money. We published an article before to introduce the Cost of Manufacturing in China. The formula is cost of material + cost of labor + profits. How can we give a quotation that even lower than material purchasing cost? For those brands such as UGG, Sony, Apple and etc.. the price is as same as you buy from anywhere in the world, if someone offer you a lower price, either the products are fack (unless you prefer this), or you can never get your products.
5. Payment Terms
Because the scammers do not have right to open an company account in bank, so usually they only accept payment transfied by Western Union, Paypal and T/T(private account in China). So be careful with this point, sometime the good Chinese exporters require to transfer money to their private accounts because they want cash flow, it is understandable, that's the way we do business in China (avoid the tax and get money quickly). But on the other hand, most of good Chinese exporters will not ask this payment term because they are afraid to be considered as scammers.
6. Total Image
Scammers also have timing cost. There is a Chinese saying "Casting Roundly, Catching Actively". If they think you are suspecting of them, they will not waste their time on you. Let's put it another way, the scammers, especially Chinese scammers, will not waste their time on their images. They use their "name", websites and phone number maximum for 6 months - 1 year. Or, they do not care about their images - sending AD everywhere on the internet (blogs, forums, and etc..). Even they are not scammers, they will not be a business partner for long-term.
7. Finding Someone who Can Really Count On
This should be an win-win option business, the Chinese factories get profits, the Chinese exporters get profits, the importers get profits. So if you do not want to waste your time and money, then find someone who can be trusted, and let him to do quality control and price negotiation. What you can get is risk-free and Worry-Saving.
Let's do it.
